Build credibility, increase revenue, and impress homeowners with a contractors license
With a median salary of $89,000 for residential general contractors, and an average of $97,180 across the board, you can build a lucrative and rewarding career as a general contractor. But you need to fulfill your state’s licensing requirements first to make it official.
Getting your contractors license allows you to bid for higher-paying projects and projects that require permits. Without a license, you won’t legally be permitted to:
Build room additions
Remove load-bearing walls
Do high-end kitchen and bathroom remodels
Oversee new construction projects
Doing this work without a license or a permit means serious repercussions if you get caught, including hefty fines, grounds for non-payment, and even imprisonment.
Licensing requirements vary from state to state. And no two are alike. Some licenses and certifications are granted by the state and others are issued by your local government.
No matter who regulates licensing requirements, here’s what the majority of licensing and registration boards require you to do:
Hold a state license or a certificate
Register your business with your local or county government
Pass business, trade, and law exams
Pass a criminal background check
Carry liability insurance and workers' compensation insurance
Submit financial statements or a bond
Provide evidence of construction-related work experience
Now let’s delve into the requirements for each state.
State license required: Yes
Registration required: Yes
Registration fee: $300
Testing requirements: Pass trade, law, and business exams
Alabama requires contractors to get licensed through the Secretary of State for residential projects that exceed $10,000, industrial and commercial projects over $50,000, and $5,000 for swimming pool installations.
You’ll also need to provide evidence of:
Registration
Liability insurance
Construction work experience
Financial statements prepared by a certified accountant
State license required: Yes
Registration required: Yes
Registration fee: $250
Testing requirements: Pass climate control examination (for residential endorsement)
Register at the State of Alaska Department of Commerce, Community, and Economic Development
In Alaska, contractors must be licensed and hold general liability insurance and workers' compensation insurance.
State license required: Yes
Registration required: Yes
Registration fee: $279 to $580, depending on classification
Testing requirements: Pass trade and Rules and Statues Training exams
Residential and commercial contractors will need to show proof of:
A licensed bond
workers' compensation insurance
Registration if you have an LLC
A background check
State license required: Yes
Registration required: Yes
Registration fee: $100
Testing requirements: Pass business and law exams
Arkansas requires contractors to obtain a commercial license when project bids exceed $50,000, or a residential license when you work on single-family home projects that exceed $2,000. You’ll also need to:
Pass a background check
Include 3 reference letters written in the last 90 days
Show financial statements or a $10,000 contractor bond
State license required: Yes
Registration required: Yes
Price for registration: $200
Testing requirements: Pass law, business, and trade exams
California requires a license for contractors working on projects that exceed $500. You’ll also need to:
Submit a $15,000 bond or cash deposit to CSLB
Pass a criminal background check
Possess four years of journey-level experience
Show proof of workers' compensation for your employees
State license required: Yes
Registration required: Register your business
Registration fees: Check your local government for fees and exam requirements
General contractors must apply for a license through their county or city. But specialization licenses like electricians require a state license. Check your local government for insurance and fingerprint requirements.
State license required: Yes
Registration required: Yes
Registration fee: $500
Testing requirements: None
Connecticut separates contractors into two groups: major contractors and minor contractors. Major contractors work on commercial buildings and need to submit:
Proof of liability insurance
References
Certified copy of trade name if applicable
A certificate of existence from the Secretary of State if you’re an LLC or corporation
Minor contractors work on single-family homes and smaller multi-family units. They’ll need to register as a new home construction contractor or a home improvement contractor.
State license required: Yes
Registration required: Yes
Registration fee: $75
Testing requirements: None
Delaware offers resident contractor licenses and non-resident contractor licenses. The Division of Revenue requires contractors to:
Obtain a business license
Pay a gross receipts tax
Obtain a surety bond (Non-resident contractors)
Provide evidence of workers' compensation and unemployment insurance
State license required: Yes
Registration required: Yes
Registration fee: $209 (odd years); $309 (even years)
Testing requirements: Pass Florida State Construction exam
Florida offers two types of licenses: registered and certified, although they have several classifications. Registered contractors must work in their jurisdiction. Certified contractors are free to work anywhere in Florida. Contractors must possess workers' compensation insurance.
State license required: Yes
Registration required: Yes
Registration fee: $200
Testing requirements: Pass business, law, and licensure exams
Like other states, Georgia divides contractors by residential contractors and general contractors when licensing. Residential contractors work on one-or two-family residences and townhouses three stories or less with costs exceeding $2,500. General contractors have no restrictions.
Both types of contractors must:
Earn a bachelor's degree in a construction-related discipline from an accredited university or college or possess a combination of experience and schooling to be approved by the Secretary of State.
Show a net worth of $25,000 (residential contractors) and $150,000 (general contractors
Exhibit evidence of liability insurance
State license required: Yes
Registration required: Yes
Registration fee: $663 or $494 based on time of application
Testing requirements: Pass trade, business, and law exams
Register at Hawaii Department of Commerce and Consumer Affairs
Hawaii requires licensure for contractors working on renovation and build projects that require permits or jobs exceeding $1,000. Contractors must possess four years of supervisory experience within the past 10 years.
Contractor classifications include:
General building contractors
General engineering contractors
Specialty contractors
State license required: No
Registration required: Yes
Registration fee: $50
Testing requirements: Only for specialty contractors
Although the state doesn’t issue contractor licenses, contractors must register with the Idaho Contractors Board. When registering, make sure you submit:
A certificate of your workers' compensation insurance
A certificate of liability insurance with a minimum coverage of $300,000
A certificate of your business name from the Secretary of State
State license required: No
Registration required: Regulated at the local level
Registration fee: Check with your local government for fees and testing requirements
Apart from roofing and plumbing licenses, Illinois doesn’t license contractors at the state level. Check with your local government who regulates contractor licensing.
State license required: No
Registration required: Regulated at local level
Registration fees: Check with your local government for fees and exam requirements
Aside from plumbers, contractor licenses are handled at the local level. Check your city and county government for requirements. Contractors who wish to work in Indianapolis should visit the Department of Business and Neighborhood Services.
State license required: Yes
Registration required: Yes
Registration fee: Depends on time of application
Testing requirements: Exams required for specialty contractors
The Iowa Division of Labor requires all construction contractors who work on home improvements, new construction, and building alterations to register when they earn $2,000 or more per year. Trade specializations require separate registration. All applicants need to submit an unemployment insurance number before they apply.
State license required: No
Registration required: Regulated at local level
Registration fee: Check with your local government for fees and exam requirements
Kansas only requires asbestos abatement contractors and well drillers to obtain a state license. General contractors or specialty contractors requirements are regulated by the local government, so check with your city or county.
State license required: No
Registration required: Regulated at local level (except specialty contractors)
Registration fee: Check with your local government for fees and testing requirements
Kentucky only licenses plumbers, HVAC technicians, and electricians. All other contractors must seek out their local government to learn specific requirements.
State license required: Yes
Registration required: Yes
Registration fee: $100
Testing requirements: Pass business, law, and trade exams
Louisiana requires a commercial building contractors license for projects that exceed $50,000 and a residential license for projects that exceed $75,000. Home improvement contractors must register when a project costs between $7,501 and $75,000. Mold remediation exceeding $1 (you read that right) requires a license.
State license required: No, only plumbers, electricians, and asbestos remediation
Registration required: Regulated at local level
Registration fee: Check your local government for fees and exam requirements
While general contractors don’t need a contractor license, they must get a business license, and they also need to submit contracts to the state for projects over $3,000.
State license required: Yes
Registration required: Yes
Registration fee: $250
Testing requirements: Pass contractors exam
The Maryland Home Improvement Commission requires home improvement contractors to obtain a license as well as electricians, plumbers, gas fitters, and HVAC technicians. Contractors must possess two years of work experience and submit financial statements or surety bonds with applications.
State license required: Construction supervisors only
Registration required: Yes
Registration fee: $150 for home improvement contractors
Testing requirements: Pass building code and construction practices exam
Register at Office of Consumer Affairs and Business Regulation
Contractors must apply for their construction supervisor license with the Office of Public Safety and Inspections, while home improvement contractors don’t require licenses but need to register with the Office of Consumer Affairs and Business Regulation when they work on residential properties containing one to four units.
State license required: Yes
Registration required: Yes
Price for registration: $195
Testing requirements: Pass general contractors exam
Michigan requires contractors working on projects exceeding $600 to apply for a Residential Builders License or a Maintenance and Alteration Contractor's License. They’ll need to apply through the Bureau of Construction Codes.
State license required: Yes
Registration required: Yes
Price for registration: $440
Testing requirements: Pass business and law exams
Minnesota requires builders, remodelers, and roofing contractors to obtain a license through the Department of Labor and Industry when gross receipts exceed $15,000. Electricians need to apply with the Board of Electricity; plumbers need to register with the Plumbing Board of Minnesota. HVAC licensing is done at the local level.
State license required: Yes
Registration required: Yes
Price for registration: $200 (residential); $400 (commercial)
Testing requirements: Pass business management and law exams
The Mississippi State Board of Contractors regulates contractor licensing in the state. Your contractor’s license will be deemed as either residential or commercial. The following classifications include:
Building construction
Highway street and bridge construction
Heavy construction
Mechanical and municipal
Public works
Certain classifications may require additional steps to obtain a license.
State license required: No
Registration required: Regulated at local level
Registration fee: Check your local government for fees and testing requirements
The state divides classifications for licensing for contractors into general contracting, roofing, plumbing, and electrical. Candidates must obtain a license at the local level. Each municipality has different requirements and regulations.
State license required: Construction contractors only
Registration required: Yes
Registration fee: $70 for construction contractors; $125 for independent contractors
Testing requirements: None
Montana requires all contractors to register with the state through the Department of Labor and Industry. However, only contractors with employees need to obtain a license. Contractors who work for themselves are deemed as independent contractors. Plumbers and electricians with or without employees must obtain a license.
State license required: Yes
Registration required: Yes
Registration fee: $40
Testing requirements: None
When you work in construction as a contractor or a subcontractor, you must get a license through the Nebraska Department of Labor. The only exceptions: contractors who earn less than $5,000 a year. Contractors with employees must also submit a workers' compensation certificate of insurance.
State license required: Yes
Registration required: Yes
Registration fee: $600 every two years
Testing requirements: Pass CMS exam
Nevada requires contractors to obtain a license to work in the state. However, they make an exception for contractors that earn less than $1,000 for work performed.
State license required: Not for general contractors
Registration required: Regulated at local level
Registration fee: Check with your local government for fees and exams
The only contractors required to be licensed in the state are plumbers, asbestos specialists, lead abatement contractors, and electricians who work on heat, power, and light circuits. Alarm electricians don’t need a license. General contractors should check with their city or county for requirements.
State license required: Home improvement contractors, home repair contractors who finance projects, and specialty contractors
Registration required: Yes
Registration fee: $110
Testing requirements: None
New Jersey requires general contractors to register with the New Jersey Division of Consumer Affairs, but only home improvement contractors, plumbers, electricians, and home repair contractors that finance projects need a license. The exception: a home repair contractor working on unfinanced projects for less than 90 days.
State license required: Yes
Registration required: Yes
Registration fee: $300
Testing requirements: Pass business, trade, and law exams
To protect consumers, New Mexico requires contractors to be licensed by the New Mexico Regulations and Licensing Department. The state holds 100 types of classifications, so check for specific requirements for your classification.
State license required: No
Registration required: Regulated at local level
Register fee: Check your local government for fees and testing requirements
New York only requires crane operators and asbestos abatement professionals to obtain a license at the state level. They must apply through the Department of Labor. Other contractors need to inquire in their city or county.
State license required: Yes
Registration required: Yes
Registration fee: $75 (limited license), $100 (intermediate license), $125 (unlimited license)
Testing requirements: Pass NASCLA exam
Contractors wishing to work in North Carolina need to obtain a general contractor’s license through the NC Licensing Board for General Contractors when they work on projects that exceed $30,000. The state also requires plumbers, electricians, fire sprinkler pros, and HVAC technicians to get licensed.
State license required: Yes
Registration required: Yes
Registration fee: $100 to $450 depending on class
Testing requirements: None
The state requires a license for contractors working on projects that equal or exceed $4,000. Licensing is done by the Secretary of State. Contractor candidates must provide proof of insurance and register their business.
State license required: No
Registration required: Regulated at local level
Register fee: Check your local government for fees and testing requirements
Ohio only requires plumbers, electricians, HVAC techs, and refrigeration and hydronics professionals to get a state license. All other contractors should check with their local government to learn requirements for licensing, registration, and exams.
State license required: No
Registration required: Regulated at local level
Register fee: Check your local government for fees and testing requirements
Similar to Ohio, the state of Oklahoma only licenses electricians, plumbers, and mechanical HVAC professionals. But contractors need a business license. If you’re a general contractor, visit your city and county websites to learn licensing, registration, and exam requirements and fees.
State license required: Yes
Registration required: Yes
Registration fee: $250
Testing requirements: Pass CCB exam
Home improvement pros and general contractors who want to work in Oregon need to get licensed with the state. The exceptions include:
Gutter cleaning pros
Power washing specialists
Debris cleanup companies
Real estate property managers
State license required: No
Registration required: Regulated at local level
Registration fee: Check your local government for fees and testing requirements
Pennsylvania only certifies asbestos and lead abatement pros at the state level, but contractors must register their business with the Pennsylvania Attorney General’s Office. Check your city and county websites for contractor licensing, registration, and exam requirements.
State license required: Yes
Registration required: Yes
Registration fee: $200
Testing requirements: Pass general contractor’s exam
Contractors seeking to work in Rhode Island need a license issued by the Contractor’s Registration and Licensing Board for the following projects:
Residential construction
Commercial construction
Remodeling
Alterations
Repair
As a contractor, you’ll also need to register your business with the Secretary of State.
State license required: Yes
Registration required: Yes
Registration fee: $350
Testing requirements: Pass technical trade and business law exams
South Carolina requires residential home builders, home inspectors, and residential specialty contractors, including electricians, plumbers, and HVAC technicians to get licensed at the state level. Licensees must also submit a surety bond.
State license required: No
Registration required: Regulated at local level
Registration fee: Check your local government for fees and testing requirements
South Dakota only licenses electricians, plumbers, and asbestos abatement specialists at the state level. Contractors wanting to work in South Dakota should seek out city and county government websites to learn qualifications and requirements.
State license required: Yes
Registration required: Yes
Price for registration: $250
Testing requirements: Pass business and law exams
Tennessee requires general contractors to get licensed when they bid on projects exceeding $25,000. However, projects costing less than $25,000 still require licensing for home improvement contractors, electricians, plumbers, and HVAC technicians.
State license required: No
Registration required: Regulated at local level
Price for registration: Check your local government for fees and exam requirements
If you’re not a contractor specializing in plumbing, HVAC, fire sprinkler systems, plumbing, or well drilling, you don’t need a state license. But make sure to check with your city and county to learn qualifications and requirements to work as a general contractor in your municipality.
State license required: Yes
Registration fee: $250
Testing requirements: Pass business and law exams
If you’re a contractor living or wishing to work in Utah, you’ll need a state license. Utah issues license for more than 50 classification licenses, including:
General building contractor
Residential electrical contractor
Residential master plumber
Specialty contractor
State license required: No
Registration required: Regulated at local level
Registration fees: Check with your local government for fees and testing requirements
Aside from plumbers, electricians, and HVAC pros, Vermont doesn’t issue general contractors and home improvement contractors licenses at the state level. Contact your city and county to learn the qualifications and local laws for contractors.
State license required: Yes
Registration required: Yes
Registration fee: Class A: $385: Class B: $370; Class C: $235
Testing requirements: 8 hours of pre-licensing education
The Virginia Board for Contractors licenses businesses and individuals. The board determines your license class (A, B, or C) according to the financial value of projects you oversee or do.
Areas for tradespeople include:
Construction
Residential and facilities improvement
Repair
Electrical
Plumbing
Gas fitting
HVAC
State license required: No
Registration required: Register your business
Registration fee: $118
Testing requirements: Check your local government for testing and additional requirements
Register at Washington State Department of Labor and Industries
Although a license isn’t mandatory in Washington, contractors and specialty professionals need to register their business with the Washington State Department of Labor and Industries. Contractors should also check with their city and county governments for additional qualifications and requirements.
State license required: Yes
Registration required:
Registration fee: $1,205 (4-year license) and $655 (2 year-license)
Testing requirements:
If you live in the D.C. metro area and want to do business in our U.S. capital, you must become licensed at a price that’s the highest of the 50 states. Construction Project Managers and General Contractors need to apply for their license through the Department of Consumer and Regulatory Affairs. Like many other states, specialty contractors also need a license.
State license required: Yes
Registration required: Yes
Registration fee: $90
Testing requirements: Pass business and law exams
Contractors and subcontractors currently need to apply for a license through the West Virginia Division of Labor when project costs exceed $2,500. After 24 months, according to the Division website, they will hand over the reins and contractors will need to register with the General Licensing Contractor Board.
State license required: Yes: Dweller Certifications
Registration required: Yes
Registration fee: $40
Testing requirements:
State license required: No
Registration required: Regulated at local level
Registration fee: Check your local government for fees and testing requirements
Apart from electricians, Wyoming doesn’t require contractors to hold a license. But as always, check with your local government for contractor qualification and requirements.
While most states require a specific amount of years of experience to get a license, some don’t, like Kansas and Wyoming. You might be able to get around the experience requirements by applying for a waiver or getting into business with a licensed contractor, although you’ll still need to pass exams.
